Well, I don't see why they will. The Gov't lowered it from 25% to 20% not because house prices were falling.Any thoughts on whether CMHC will lower the amount requirement for a downpayment before mortgage insurance is required?
I believe right now it is 20% - why not go to 15% as housing prices have dropped....
Look forward to some thoughts
Generally speaking, banks will not charge CMHC if you have a 20% down payment even though the CMHC site says otherwise.I do remember when the government dropped the no-charge level from 25% to 20% (just after I bought my house, wouldn't you know it). According to the chart on the CMHC website, you now require 35% downpayment to avoid CMHC fees. I don't recall seeing this change in the news, and was surprised when I first saw this a month ago.
Does anyone have any insight into this apparent change? I did a search, and did not come up with any commentary, nor do I recall seeing this in the news. Is there something I am not seeing?
Loan-to-Value Standard Premium
Up to and including 65% 0.50%
Up to and including 75% 0.65%
Up to and including 80% 1.00%
Up to and including 85% 1.75%
Up to and including 90% 2.00%
Up to and including 95% 2.75%
Extended Amortization Surcharges
Greater than 25 years, up to and including 30 years: 0.20%
Greater than 30 years, up to and including 35 years: 0.40%